SHANGHAI, Jun. 18 (SMM) – LME lead prices started Monday at USD 2,115/mt and moved around USD 2,120/mt in the Asian trading hours. Later, the report that Bernanke may hint at Fed’s exit from asset purchasing program at June’s policy meeting resulted in falling equities and rising US dollar index, with LME lead falling to USD 2,110/mt. Although the report was not based on sources from the Fed and the Empire State manufacturing index rose to 7.8 in June, well beyond forecast, sub-index for new orders slipped from -1.17 to -6.69, and employment index also dropped from 5.68 to 0, both hitting a 2013 low. In response, LME lead prices closed at USD 2,109.5/mt due to depressed market sentiment with resistance at the 20-day moving average. Trading volumes fell 1,122 lots to 2,756 lots, and positions fell 2,568 lots. LME lead inventories dropped 4,750 mt to 192,600 mt.
The US dollar index remained below the 5-day moving average. COMEX silver for July delivery closed at USD 21.8/oz, down USD 0.154/oz.
On Tuesday, SHFE 1307 lead contract will become the most active one with prices moving between RMB 13,900-14,000/mt, and spot lead prices are expected at RMB 13,850-13,950/mt.